Personal Finance

Home buyer's plan & pre-construction condos

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  • Mar 4th, 2014 1:56 pm
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[OP]
Newbie
May 1, 2012
92 posts
13 upvotes
MARKHAM

Home buyer's plan & pre-construction condos

How does utilizing the home buyer's plan work with pre-construction condos? Do you withdraw the money from your RRSP when you pay the deposits or do you withdraw the money on the year of the closing date (when the title gets transferred to you)?


Thanks,
4 replies
Deal Expert
User avatar
Jul 30, 2007
25302 posts
10193 upvotes
Toronto
it's the year that you withdraw the money from your rrsp.

Max $25K and 15 years to repay. Repayment begins 1 year after your withdrawl and CRA will send you a notice that $1,667 is required to be repaid, if not, this amount will be treated as income and will be taxed accordingly.
[OP]
Newbie
May 1, 2012
92 posts
13 upvotes
MARKHAM
I thought that the home has to be occupied within one year of the withdrawal of the RRSP as a condition. When is the "correct" time to use the HBP? Do you use it when you pay the deposit initially when you first sign the contract, or do you use it at / near the closing date?
Jr. Member
Nov 9, 2007
182 posts
20 upvotes
Vancouver
Does nobody have the answer to this? The RRSP withdrawal should be done when the pre-construction condo is about to be completed, correct?

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